TaxTMI 
TaxTMI 
2017 (11) TMI 525
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.... present appeal, sought to set aside the impugned order dated 20.03.2013 & 13.05.2013 passed by the Commissioner of Income-tax (Appeals)-XXX, New Delhi qua the assessment years 2009-10 & 2010-11 respectively on the grounds inter alia that :- ASSESSMENT YEAR : 2009-10 " 1. On the facts and in the circumstances of the case, Ld. CIT(A) has erred in : (i) Reducing the addition of Rs. 40,80,835/- to Rs. 4,45,838/- on account of interest of funds borrowed for acquiring immovable and issuing directions to adjust the same against the income from other sources; (ii) Holding that the loan taken from Reliance Capital Ltd was for the purposes of earning income from other sources; (iii) Holding that the intention of the assessee was to earn ass....
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....on loan was a revenue expenditure and not a capital expenditure. (vi) Holding that the assessee had made an investment in commercial property ignoring the fact that the unit allotted to the assessee was a house property. (vii) Not applying the ratio of decision in the case of Tuticorin Alkali Chemicals and Fertilizers Ltd Vs CIT (1997) 227 ITR 172 (SC) which is fully applicable in this case." 3. Briefly stated the facts necessary for adjudication of the controversy at hand in both the aforesaid appeals are : during scrutiny proceedings, Assessing Officer noticed that assessee has shown income from salary at Rs. 20,96,091 and Rs. 29,73,188/- and declared a loss of Rs. 4,45,838/- and Rs. 7,32,459/- under the head 'income from other s....
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.... the purpose of earning interest income on advance made to M/s. Omaxe Limited; that assessee has invested in commercial property as investment for appreciation; that the assessee has not been given possession of the property in question; that M/s. Omaxe Limited with whom the assessee has invested in commercial property has stopped paying assured return to the assessee and the assessee has stopped making payment of EMI to the developer. 8. In the backdrop of the aforesaid facts and circumstances of the case, grounds of appeal and arguments addressed by ld. Authorized Representatives of the parties to the appeal, the sole question arises for determination in this case is :- "as to whether the interest expenditure incurred by the assessee o....
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....ame of assessee, the assessee will certainly get benefit of interest payment on the loan of Rs. 6,00,00,000/- u/s 57 (iii) of the Act as it is not a house property income as has been held by the AO. Rather it was invested in the commercial property made by the assessee to get assured return / interest from his investment of Rs. 6,00,00,000/-. 12. In these circumstances, the ld. CIT (A) has rightly held that this income is to be treated as income from other sources and the interest paid by assessee to M/s. Reliance Capital Limited is to be allowed as expenditure incurred for earning the income u/s 57 (iii) of the Act. Moreover, when there was a categoric understanding between the assessee and M/s. Reliance Capital Limited that the assessee ....